Multiple Choice
Which of the following best describes the simple spending multiplier?
A) It shows the magnified change in planned aggregate spending that arises from a change in output.
B) It shows the magnified change in equilibrium output demanded that arises from a change in income.
C) It shows the magnified change in planned aggregate spending that arises from a change in equilibrium output.
D) It shows the magnified change in equilibrium output demanded that arises from a given initial change in planned aggregate spending.
E) It shows the change in planned aggregate spending that arises from a change in real output.
Correct Answer:

Verified
Correct Answer:
Verified
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